Search results
- Cash equivalents are short-term, highly liquid assets that can readily be converted into known amounts of cash and with little risk of price fluctuations.
ecampusontario.pressbooks.pub/intermediatefinancialaccounting/chapter/6-2-cash-and-cash-equivalents/
May 31, 2024 · Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately.
Cash equivalents are short-term, highly liquid assets that can readily be converted into known amounts of cash and with little risk of price fluctuations. An example of a short- term cash equivalent asset would be one that matures in three months or less from the acquisition date.
Oct 13, 2024 · Current assets include liquid assets, such as cash and short-term investments. They also include assets that are expected to become liquid within a year, such as inventory and...
Jul 16, 2024 · IAS 7 defines cash equivalents as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
If the reporting entity can access the cash or cash equivalents without any legal or contractual consequence (i.e., there is no requirement that the specific cash or cash equivalent be set aside for remittance), the cash or cash equivalent is likely not legally restricted.
Sep 13, 2024 · Cash equivalents. Cash equivalents are investments that are (IAS 7.6-9): Held for meeting short-term cash commitments rather than for investment or other purposes, Highly liquid, Readily convertible to known amounts of cash, and; Subject to an insignificant risk of changes in value.
People also ask
What is a cash equivalent asset?
What is a cash equivalent?
What is a cash equivalent in IAS 7?
Can a liquid instrument be considered a cash equivalent?
Which investment is not a cash equivalent?
Are equity investments included in cash equivalents?
May 25, 2024 · Cash equivalents are financial instruments that are easily convertible into a known amount of cash and are subject to an insignificant risk of changes in value. These assets are typically held for short durations, often with maturities of three months or less from the date of acquisition.